This invention relates to circular knitting machines having fabric take-up mechanisms that wind the knitted fabric produced by the machines upon reels, and that cut the fabric when a preselected amount of fabric has been wound upon each reel. The invention more specifically relates to an improved take-up mechanism that reduces if not altogether obviates the possibility of the trailing end portion of the fabric upon the reel being re-engaged and caught up by one of the fabric delivery rolls of the knitting machine during passage of the trailing end portion of the fabric downwardly from such rolls. This in turn reduces the possibility of take-up of the fabric being disrupted.